Greg DavisDavid Ratliff PresidentPartner/Engineer 363 Resource Parkway Winder, GA BY
T EAM Greg Davis Founding Partner MBA 10 Years Police and 20 years Marine / NG Developing / Selling to target market for 10 years David Ratliff Partner Engineer 30 years of product design experience Developing / Selling to target market for 15 years
O VERVIEW Hybrid Idle will eliminate all unnecessary idling in Police Cars; 4 hours or 3 gallons per car/per shift. DO THE MATH Average Department savings approximately $76,000 dollars per year Total Potential Savings Police Market Alone 372 Million Gallons and 1.3 Billion Dollars Other fleets include Ambulance Service, Taxi Cabs, Service Trucks and more Link to Data Slide
M ARKET S IZE VehiclesRevenueGallons SavedDollars Saved Police400,0001,518,000,000240,000,000840,000,000 Other Fleet3,072,00011,658,240,0001,843,200,0006,451,200,000 US Gov’t2,752,00010,443,840,0001,651,200,0005,779,200,000 Taxi148,000561,660,00088,800,000310,800,000 Private200,000759,000,000120,000,000420,000,000 Total6,572,00024,940,740,0003,943,200,00013,801,200,000
F ORECAST Year 1Year 2Year 3Year 4Year 5 # of Customers # of Systems , , , ,500 # of Employees Sales 700K9.2M40.7M90.9M138.1M Gross Margin 392K5.5M24.4M54.5M82.9M Expenses 1.6M2.8M3.6M5.1M6.4M Profits (1.2M)2.6M20.7M49.5M76.4M Total Systems Sold 70K to 400K Police Market Total Market Size 6.6M Vehicles
N EEDS – 2.5 M ILLION Tranche 1 – $350,000 Completion 180 Days Start-Up, Parts, Contractors, Machining, Design, Demo Vehicle, Proof of Claims, Beta Testing, Pre-Sales Tranche 2 – 2.15 Million R&D to expand to other makes/models, Sales & Marketing, Expand Operations, Initial Inventory, Working Capital
W HY H YBRID I DLE ? Provides comfortable vehicle climate for Patrol Officers. Provides comfortable vehicle climate in K-9 units. Reduces wear and tear on vehicle’s drive train. Fuel cost savings immediately. System pays for itself in fuel and maintenance savings. Shows citizens the agency is environmentally conservative. Link to Advantages Slide
T YPICAL S YSTEM A RCHITECTURE
BenefitsLimitations Aire Dock Provides A/C/Heat for Trucks, Commercial Vehicles “Docking Station”. Vehicles must be stationary to use. Energy Extreme Provides Emergency Vehicle Electrical Power Does not provide A/C / Heat in Vehicle Havis IdleRight2 Provides Emergency Vehicle Electrical Power Does not provide A/C / Heat in Vehicle C OMPETITION
S UMMARY We have been selling into this market for 8 years We have Letters of Interest from Major Customers We are open to different funding options We incorporate comfort and automation where competitors do not
Greg DavisDavid Ratliff President Partner/Engineer 363 Resource Parkway Winder, GA F OR ADDITIONAL INFORMATION C ONTACT :
S ALES AND M ARKETING Epicenter Model: Six month development and Alpha testing Sell at a discount to local agencies for six month Beta testing 1 st -2 nd Qtr Year 2: roll-out to S.E. U.S., hire / train Sales Reps for major market areas and begin pre-sales efforts 3 rd -4 th Qtr Year 2: roll-out to major market areas (NY, CA, TX, MidWest) Year 3 sell / license Hybrid Idle to large manufacturing / distribution company I.T.S. has 25 dealers and 3 manufacturer’s reps I.T.S. has been developing and selling products into the Public Safety market space for 8 years
B USINESS M ODEL Type of Entity Hybrid Idle will be established as its own entity (LLC or INC) and license the technology from Integrated Technology Systems in perpetuity with full ownership rights Hybrid Idle will be owned by Integrated Technology Systems, LLC, Investors, and/or Joint Venture Partners How we will make Money Hybrid Idle will be marketed as a high-volume / high-value product with a price estimate of $5,995 There will be a quantity based discount model of 10-30% Value added retailers and distributors volume discount at 20-40% COGS expected to be around $2,300 or 60% GM on direct sale and 45% GM average for dealer / distributor network
S TATUS AND M ILESTONES Currently developing / selling other products in market space, Dealer Network established, Patented, Proof of Concept, Market Research and BETA commitments from several agencies Requesting 2.5M with a return of 12.5M at the end of Year 3 (Shares / Warrants) 60 days from working prototype 180 days from BETA installs 270 days from Revenue 365 days from Retail/Dealer sales.
Avg. Idle per Shift = 4 hours Avg. Cars per Shift = 20 Avg. Burn Rate =.75 GPH Avg. Fuel Price = 3.50 Number of Agencies = 17,000 Number of Vehicles = 400,000 4 X.75 = 3 GPH per Vehicle 3 X 20 = 60 GPS(shift) 60 X $3.50 = $210 Savings PD(day) 60 Gallons X 365 = 21,900 GPY(year) 21,900 GPY x $3.50 = $76,650 Saved PY 21,900 X 17,000 = 372,300,000 Gal Saved $76,650 X 17,000 = $1,303,050,000 Saved C ALCULATIONS Link Back to Presentation 20 X $5,995 = $119,900 Invoice Total Savings per Year = $76,650 Cash Flow 1 st Year = ($43,250) 2 nd Year = $33,400 3 rd Year = $76,650 4 th Year = $76,650 Total Savings over 4 Years = $186, X $5,995 = $119,900 Invoice Total $119,900 + Interest = $138,000 / 3 = $46,000 PY Savings per Year = $76,650 Cash Flow 1 st Year = $30,650 2 nd Year = $30,650 3 rd Year = $30,650 4 th Year = $76,650 Total Savings over 4 Years = $168,600 One Up-Front Payment Financed Payments DATADATA MATHMATH
Provides cabin air conditioning / heat without engine running. Provides auxiliary electrical power for emergency response equipment without engine running. Fully automatic operation. Requires no officer interaction or monitoring. Transferrable from old vehicle to replacement vehicle. Modular design. Easily repairable / replaceable modules. Provides real world data for departments indicating savings, average run time, diagnostic information. System recharges automatically when car is driven. Utilizes vehicle’s existing Air Conditioning Components. Does not add Auxiliary AC Equipment such as a secondary/trunk-mounted electric compressor. Allows normal/automatic functionality of the existing Air Conditioning Components. Additionally provides Electrical Power for Emergency Response Equipment. Minimally invasive installation / can be installed by automotive technician. Installs into any vehicle. Is not brand / make / year specific. HYBRID IDLE ADVANTAGES Why Hybrid Idle Is DifferentHow Hybrid Idle Works Link Back to Presentation